Abstract:
Using establishment-level panel data from the Occupational Employment and Wage Statistics program, I estimate the eff ect of minimum wage increases implemented by 10 states in 2014 and 2015. I show that minimum wage increases lead to wage spillovers within establishments. I find little evidence that minimum wage increases induce establishments to reorganize their occupational mix. Finally, I fi nd that minimum wage increases propagate up the management hierarchy, leading to increased wages for supervisors. Nonetheless, I fi nd overall wage inequality decreases within establishments
after minimum wage increases.
pre-publication version: https://elizaforsythe.web.illinois.edu/wp-content/uploads/2023/07/Effect_of_Minimum_Wage_on_Establishments.pdf